Auto Insurance Claims: Revoking autotheft statement, insurance expert, insurance investigation

Question
What happens when you revoke an autotheft claim? Can you get in trouble with the law or your insurance company? Would your rate go up or would they stop doing business with you?

Answer
Hello Michael,

I assume when you refer to revoking the claim you mean personally withdrawing the claim.

You are free to do that at any time, and technically that would mean that the insurance company would take no further action.  However, if during the life of the claim the claim investigation revealed the possibility of fraud, then it is entirely possible that the company might refer it to law enforcement anyway.  In most all states insurance companies are required to refer suspicious claims to authorities whether the claim has been paid or not.  However, bear in mind that there are all levels of competency when it comes to genuinely investigating a claim.  While one might deem a claim suspicious, a more experienced investigator, based on a better understanding of evidence, might not.

Can you get in trouble with the insurance company?  It depends on the company's findings in regard to a particular claim. Get in trouble - no.  Could you have your policy non-renewed?  Perhaps.

Law enforcement?  Only if the claim was referred and a police agency continued with an investigation.  If the agency found evidence of a crime, that would clearly be a problem.

Let me make one important distinction here.  If you have filed a valid claim and you are simply being hassled by an insurance company, do not allow yourself to be intimidated.  Stick by your claim, and cooperate with the investigation.  You have paid premiums for protection.  If your claim is valid, they have an obligation to honor the terms of your policy and to pay the claim.

Hope this straightens things out.

Jane Pytel

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